European stocks struggled for direction early in trade but were finally helped higher by solid U.S. data releases. The number of U.S. workers filing new applications for jobless benefits dropped to its lowest level in five years last week. Home building surged 12.1% in December, to the highest level since July 2008.

European retailers put on a good show. French retailer CarrefourCRRFY0.90% rose 6.1% after reporting modest revenue growth in the fourth quarter, while reassuring that full-year operating profit would meet market expectations.

Belgian food retailer Delhaize GroupDEG2.08% surged 10.2% on signs that weakness in its U.S. market was starting to ease. Higher volumes at Food Lion and Delhaize's Hannaford chain pushed fourth-quarter U.S. sales up 1.9%, after four quarters of decline.

In London, Associated British FoodsASBFY1.75% gained 3.2% as its first-quarter revenue beat expectations, helped by an outstanding performance from its discount fashion chain Primark.

Nokia lost 1.6% after the Finnish handset maker announced another round of job cuts as part of a plan announced last June to slash 10,000 jobs by the end of this year.

Miners ended down, but well off session lows, after Rio Tinto said it would book a $14 billion impairment charge, adding that chief executive Tom Albanese would be stepping down. Rio Tinto retreated 0.5%.

In currency trading, the euro rose to a session high against the dollar as Spain sold its maximum targeted €4.5 billion ($5.98 billion) worth of bonds at an auction. The common currency was at $1.3363 from $1.3289 late Wednesday in New York.

Among commodities, light, sweet, crude for February delivery was $1.12 higher at $95.36 on the New York Mercantile Exchange by the close of European equity markets. Most actively traded gold for February delivery on the Comex division of the New York Mercantile Exchange was up $5.60 per ounce at $1,688.80.

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